Fti Consulting, Inc. · NYSE:FCN
Fti Consulting — Q2 2020 Earnings Presentation
31 slides from Fti Consulting's earnings presentation, August 2020
Slide 1: Investor Presentation
Investor Presentation FTI Consulting, Inc. August 2020
Slide 2: Cautionary Note about Forward-Looking Statements
Cautionary Note about Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which involve uncertainties and risks. Forward-loo
Slide 3: Investment Thesis
Investment Thesis Leading global business advisory firm with strong people and strong positions: corporations, law firms and governments come to us when there is a critical need Organic growth strategy with an emphasis on profitable revenue growth Committed to building a profitable business with sus
Slide 4: FTI Consulting: Experts with Impact
FTI Consulting: Experts with Impact FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes. FCN $4.4B 1982 5,800+ Publicly Equity Market Year Employees Traded Capitalization (1) Founded Worldwide 590+ 84 9 S
Slide 5: Our Global Reach
Our Global Reach With offices in every major financial center and every corner of the globe, we successfully serve our clients wherever challenges and opportunities arise Europe, the Middle East, North America Latin America Africa Asia Australia Canada Argentina Colombia Belgium Ireland Spain China
Slide 6: Business Snapshot: Five Segments, One Purpose
Business Snapshot: Five Segments, One Purpose Corporate Finance & Restructuring FTI Consulting is organized into five segments, each of which is a global leader in its own right for one simple reason: Economic Technology our commitment to Consulting having a tangible, positive impact on how our clie
Slide 7: Segment & Regional Snapshot: Revenues
Segment & Regional Snapshot: Revenues Q2 2020 Segment Revenues Q2 2020 Geographic Revenues Corporate Finance & Restructuring North America Forensic and Litigation Consulting EMEA Economic Consulting Asia Pacific Technology Latin America Strategic Communications 7
Slide 8: Corporate Finance & Restructuring
Corporate Finance & Restructuring Services ▪ Restructuring – Company Advisory 15 – Creditor Advisory countries – Interim Management – Contentious Insolvency – Dispute Advisory/Litigation Support ▪ Business Transformation – Office of the CFO Solutions 45 1,362 – Performance Improvement offices profes
Slide 9: Corporate Finance & Restructuring (continued)
Corporate Finance & Restructuring (continued) Segment Offering Q2 2020 Key Financial Commentary The Corporate Finance & Restructuring ▪ Revenues increased $56.0 million, or 29.5%, from Q2 2019 to Q2 2020, which included a 1.2% segment focuses on strategic, estimated negative impact from FX. Acquisit
Slide 10: Forensic and Litigation Consulting
Forensic and Litigation Consulting Services ▪ Forensic Accounting & Advisory Services ▪ Global Risk & Investigations Practice 1,326 ▪ Cybersecurity professionals ▪ Export Controls & Sanctions ▪ Dispute Advisory Services ▪ Trial Services ▪ Data & Analytics ▪ Compliance, Monitoring & Receivership ▪ An
Slide 11: Forensic and Litigation Consulting (continued)
Forensic and Litigation Consulting (continued) Segment Offering Q2 2020 Key Financial Commentary The Forensic & Litigation Consulting ▪ Revenues decreased $39.5 million, or 27.1%, from Q2 2019 to Q2 2020, which included a segment provides a complete range of 1.4% estimated negative impact from FX. E
Slide 12: Economic Consulting
Economic Consulting Services ▪ Antitrust & Competition Economics – Non-M&A-related Antitrust – M&A-related Antitrust ▪ Financial Economics 17 – Valuation countries – Securities Litigation & Risk Management ▪ International Arbitration ▪ Regulated Industries ▪ Intellectual Property ▪ Labor & Employmen
Slide 13: Economic Consulting (continued)
Economic Consulting (continued) Segment Offering The Economic Consulting segment, including Q2 2020 Key Financial Commentary subsidiary Compass Lexecon, provides analysis of complex economic issues, helping clients with ▪ Revenues decreased $4.0 million, or 2.6%, from Q2 2019 to Q2 2020, which inclu
Slide 14: Technology
Technology Services 10 ▪ E-discovery and Data Compliance countries Management ▪ Managed Document Review ▪ Digital Forensics ▪ Information Governance, Privacy & Security ▪ Contract Intelligence 31 offices 386 professionals (in thousands, except percentages and headcount data) (unaudited) 2017 2018 Q1
Slide 15: Technology (continued)
Technology (continued) Segment Offering Q2 2020 Key Financial Commentary Our Technology segment provides ▪ Revenues decreased $8.5 million, or 15.4%, from Q2 2019 to Q2 2020 which included a 1.0% corporations and law firms with a estimated negative impact from FX. Excluding the estimated negative im
Slide 16: Strategic Communications
Strategic Communications Services ▪ Corporate Reputation 761 ▪ Public Affairs & Government Relations professionals ▪ Capital Markets Communications ▪ Crisis Communications ▪ Transaction Communications ▪ Digital, Analytics & Insights 35 offices 17 countries (in thousands, except percentages and headc
Slide 17: Strategic Communications (continued)
Strategic Communications (continued) Segment Offering Q2 2020 Key Financial Commentary The Strategic Communications segment ▪ Revenues decreased $2.2 million, or 3.8%, from Q2 2019 to Q2 2020, which included a 2.1% provides a comprehensive view of estimated negative impact from FX. Excluding the est
Slide 18: Second Quarter 2020: Select Awards & Accolades
Second Quarter 2020: Select Awards & Accolades 18
Slide 19: Financial Overview
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Slide 20: FY 2017 – Q2 2020 and FY 2020 Guidance: Revenues
FY 2017 – Q2 2020 and FY 2020 Guidance: Revenues $2,450-$2,550 20
Slide 21: FY 2017 – Q2 2020: Net Income and Adjusted EBITDA
FY 2017 – Q2 2020: Net Income and Adjusted EBITDA Net Income Adjusted EBITDA (1) 1. See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted EBITDA, which is a non-GAAP financial measure, to the most directly comp
Slide 22: FY 2017 – Q2 2020 and FY 2020 Guidance: Earnings Per Diluted Share
FY 2017 – Q2 2020 and FY 2020 Guidance: Earnings Per Diluted Share and Adjusted Earnings Per Diluted Share $5.32-$5.82 (1) $5.50-$6.00 1. See accompanying financial tables and “End Notes: FTI Consulting Non-GAAP Financial Measures” for the definition and reconciliation of Adjusted Earnings Per Dilut
Slide 23: Select Cash Position and Capital Allocation
Q2 2020, Q1 2020 and Q2 2019: Select Cash Position and Capital Allocation All numbers in thousands, except for DSO Q2 2020 Q1 2020 Q2 2019 Cash and cash equivalents $ 304,206 $ 223,063 $ 189,106 Accounts receivable, net $ 714,918 $ 736,898 $ 743,402 Days sales outstanding (“DSO”) (1) 98 104 103 Net
Slide 24: Financial Tables: Reconciliations of Non-GAAP Financial Measures
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Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (in thousands) Q2 2020 Q1 2020 FY 2019 FY 2018 FY 2017 Net Income $ 48,174 $ 56,747 $ 216,726 $ 150,611 $ 107,962 Income tax provision (benefit) 14,470 16,465 71,724 57,181 (20,857) Interest income and other (2,202) (5,017) (2,061) (4,977) (3,752) Inte
Slide 26: Reconciliations of Net Income to Adjusted Net Income and Adjusted EPS
Reconciliations of Net Income to Adjusted Net Income and Earnings Per Diluted Share to Adjusted Earnings Per Diluted Share (in thousands, except for per share data) Q2 2020 Q1 2020 FY 2019 FY 2018 FY 2017 Net income $48,174 $56,747 $216,726 $150,611 $107,962 Add back: Special charges — — — — 40,885
Slide 27: Reconciliation of Net Income to Total Adjusted Segment EBITDA
Reconciliation of Net Income to Total Adjusted Segment EBITDA (in thousands) Q2 2020 Net Income $48,174 Add back: Income tax provision 14,470 Interest income and other (2,202) Interest expense 5,157 Unallocated corporate expense 30,276 Segment depreciation expense 7,191 Amortization of intangible as
Slide 28: Reconciliation of Net Cash from Operating Activities to Free Cash Flow
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow (in thousands) Q2 2020 Q1 2020 Q2 2019 Net cash provided by (used in) operating activities $ 152,976 $ (123,562) $ 47,648 Purchases of property and equipment (5,663) (8,236) (10,508) Free Cash Flow (1) $ 147,313
Slide 29: Reconciliation of Full Year 2020 EPS Guidance to Adjusted EPS Guidance
Reconciliation of Full Year 2020 EPS Guidance to Adjusted EPS Guidance Year Ended December 31, 2020 Low High Guidance on estimated earnings per common share - diluted (GAAP) (1) $ 5.32 $ 5.82 Non-cash interest expense on convertible notes, net of tax 0.18 0.18 Guidance on estimated adjusted earnings
Slide 30: End Notes: FTI Consulting Non-GAAP Financial Measures
End Notes: FTI Consulting Non-GAAP Financial Measures In this presentation, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the Un
Slide 31: Experts with Impact
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